Steve & Barry's to Keep 173 Stores, Close 103 Others

Sep 17, 2008

Discount clothing chain Steve & Barry's has begun final liquidation sales at the 103 locations it will be closing following its takeover last month by BHY Holdings LHC, an affiliate of investment firms Bay Harbour Management and York Capital Management.

Steve & Barry's LLC, based in Port Washington, N.Y., filed for Chapter 11 bankruptcy protection in July after ambitious growth plans were hurt by slower consumer spending and the credit squeeze.

A bankruptcy court approved the $163 million acquisition in August. Under terms of the deal the company is closing nearly half its locations to operate with a smaller base of 173 stores, in an effort to achieve profitability.

Final liquidation sales have begun at the closing locations and the last day of sales for 24 stores will be Sept. 24. Other stores will close soon after.

The company still plans to open a retail location in New York ''over the next few months'', but no other new stores are planned.